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Is China in the middle income trap?

• alanwong 8y ago
  That's probably the literally trillion dollar question. I talked a bit about it with China scholars. The only thing they kind of agreed on is that it's a big question mark. China is confident that it can avoid the trap, though. Lou Jiwei, the former finance minister, famously said 2 years ago that China had a 50/50 chance of getting stuck at "middle income." But now as a head of a different government agency he recently said that he's confident that China will become a high-income country in a few years. That's probably something we should address in another article later.
• d2161 8y ago
  You don't know whether you are in the middle income trap without the benefit of hindsight. By that time it's too late. If China does move up the value added chain, it could lead to enormous wealth creation globally. For businesses and consumers. That's why I am dissatisfied at the whole America First mentality. It doesn't matter if it's China, India, South Africa or whatever country. Globalization benefits us all and we should support their development.